ETF Securities USA LLC (ETFS) today announced that the total assets under management (AUM) of its U.S.-listed products is now $4.7 billion, which represents 15% of the firm’s new total of roughly $31 billion in AUM worldwide as at the end of August 2011.
“ETF Securities entered the U.S. market in July 2009 and we have exceeded $4.5 billion in AUM in just over two years,” said William Rhind1, Managing Director at ETF Securities (US) LLC based in New York, NY. “We are delighted with the progress we are making in the United States and hope to expand our presence here with a new range of exchange-traded products.”
U.S.-Listed PPLT Now Largest
The company also today announced that its Physical Platinum Shares (PPLT) is now the world’s largest physically-backed Platinum ETP in terms of AUM, which stood at $886 million on August 31, 2011. This figure represents roughly 480,000 ounces of platinum stored in secure vaults located in London, U.K. and Zurich, Switzerland.
“ETF Securities has the two largest physically-backed Platinum ETPs in the world, which represent almost 60% of AUM in all physically-backed Platinum ETPs globally,” said Rhind. “Our PPLT in the U.S. is now larger than its ETFS counterpart in Europe, which may reflect growing demand from U.S. investors for platinum funds – and precious metals funds generally – during uncertain economic times.”
PPLT began trading on the NYSE ARCA on January 8, 2010 and has since firmly established itself in the physically-backed product landscape. PPLT offers exposure to platinum at the lowest management fees2 of any platinum ETP in the U.S. market at 60 basis points (bps)3.
The highlights of PPLT are:
Physically-backed: PPLT shares represent interest in physical platinum held in secure vaults located in London, U.K. and Zurich, Switzerland
Competitively Priced: Currently, at 60 bps, the expense ratio of PPLT is the lowest of any ETP in the U.S. market that offers exposure to platinum
Platinum Bullion Audited: All daily platinum bar numbers as well as vault audit reports are published on our website at: www.etfsecurities.com
ETFS currently has seven listed products in the U.S.: ETFS Physical Swiss Gold Shares (SGOL), ETFS Physical Silver Shares (SIVR), ETFS Physical Platinum Shares (PPLT), ETFS Physical Palladium Shares (PALL), ETFS Physical Precious Metals Basket Shares (GLTR), ETFS Physical White Metal Basket Shares (WITE) and ETFS Asian Gold Shares (AGOL).
ETFS Physical Platinum (PHPT), our European physically-backed platinum product, is listed on the London Stock Exchange.
Data source: Bloomberg; ETF Securities
The ETFS Silver Trust, ETFS Gold Trust, ETFS Platinum Trust, ETFS Palladium Trust, ETFS Precious Metals Basket Trust, ETFS White Metals Basket Trust, and ETFS Asian Gold Trust are not investment companies registered under the Investment Company Act of 1940 or commodity pools for purposes of the Commodity Exchange Act. Shares of the Trusts are not subject to the same regulatory requirements as mutual funds. These investments are not suitable for all investors. Please read the prospectus carefully before investing.
Description of Exchange-Traded Products
Exchange-Traded Products (ETPs) – the umbrella term used to describe Exchange-Traded Funds (ETFs), Exchange-Traded Commodities (ETCs), Exchange-Traded Notes (ETNs), and US Grantor and other statutory trusts. They are collateralized or uncollateralized open-ended securities listed on a stock exchange tracking an underlying asset.
Risks and Important Considerations
The value of the Shares relates directly to the value of platinum held by the Trusts and fluctuations in the price of gold, silver, platinum and palladium could materially adversely affect an investment in the Shares. Several factors may affect the price of gold, silver, platinum and palladium including: A change in economic conditions, such as a recession, can adversely affect the price of platinum. Gold, silver, platinum, and palladium are used in a wide range of industrial applications, and an economic downturn could have a negative impact on its demand and, consequently, its price and the price of the Shares; Investors' expectations with respect to the rate of inflation; currency exchange rates; interest rates; investment and trading activities of hedge funds and commodity funds; and global or regional political, economic or financial events and situations. Should there be an increase in the level of hedge activity of bullion producing companies, it could cause a decline in world prices, adversely affecting the price of the Shares. Also, should the speculative community take a negative view towards bullion, it could cause a decline in world gold, silver, platinum and palladium prices, negatively impacting the price of the Shares. There is a risk that part or all of the Trusts’ gold, silver, platinum, and palladium could be lost, damaged or stolen. Failure by the Custodian or Sub-Custodian to exercise due care in the safekeeping of the precious metals held by the Trusts could result in a loss to the Trusts. Investments in the trust does not constitute a direct investment in the underlying metal.
The Trusts are new and have limited operating history. Commodities generally are volatile and are not suitable for all investors. Trusts focusing on a single commodity generally experience greater volatility. Since there is no limit on the amount of gold, silver, platinum, and palladium that the Trusts may acquire, the Trusts, as they grow, may have an impact on the supply and demand of gold, silver, platinum, and palladium. Please refer to the prospectuses for complete information regarding all risks associated with the Trusts. Shares in the Trusts are not FDIC insured, may lose value, and have no bank guarantee.
This material must be accompanied or preceded by a prospectus. Please read the prospectus carefully before investing. Click here to review the prospectus.
ALPS Distributors, Inc. is the marketing agent for the ETFS Silver Trust, ETFS Gold Trust, ETFS Platinum Trust, ETFS Palladium Trust, ETFS Precious Metals Basket Trust, ETFS White Metals Basket Trust, and ETFS Asian Gold Trust (“the Trusts”). ETF Securities Ltd. or its affiliates are not affiliated with ALPS Distributors, Inc. Certain marketing services may be provided for the Trusts by ETF Securities (US) LLC. ALPS Distributors, Inc. and ETF Securities (US) LLC do not provide any services for the European product, ETFS Physical Platinum.
Although Shares of the Trusts may be bought and sold on the exchange through any brokerage account, they are not individually redeemable directly from the Trusts. Investors may acquire Shares and tender them for redemption through the Trusts in Basket aggregation only. Please see the prospectus for more details.
This press release contains “forward-looking statements” with respect to results of operations, plans, objectives, future performance and business. Statements preceded by, followed by or that include words such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, or similar expressions are intended to identify some of the forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are included, along with the statement, for purposes of complying with the safe harbor provisions of that Act. All statements (other than statements of historical fact) included in this press release that address activities, events or developments that will or may occurring the future, including such matters as changes in commodity prices and market conditions (for platinum and the Shares), the Trusts operations, the Sponsors plans and references to the Trusts future success and other similar matters are forward looking statements. These statements are only predictions. Actual events or results may differ materially.
|1||William Rhind is a registered representative of ALPS Distributors, Inc.|
|2||Ordinary brokerage fees do apply.|
|3||One basis point is equal to 0.01%. ETF000409 08/31/2012|